Evoke PLC, the parent company of major gambling brands William Hill and 888, has officially put itself into play following a turbulent year defined by market pressures and looming regulatory costs. The London-listed operator confirmed this Tuesday that its board has engaged investment banks Morgan Stanley and Rothschild to conduct a comprehensive strategic review.
The objective is to explore all potential avenues to maximize shareholder value, with options ranging from the disposal of specific assets to a full sale of the entire group.
The catalyst for this drastic move is the United Kingdom’s new gambling tax regime, introduced by Chancellor Rachel Reeves in the November Budget. The fiscal changes pose a severe threat to Evoke’s future profitability, specifically the decision to nearly double the remote gaming duty on online slots and casinos from 21% to 40% starting in April 2026.
This will be followed by a new 25% duty on online sports betting in 2027. Evoke estimates these measures will increase its annualized duty costs by approximately £125 million to £135 million once fully implemented.
These financial headwinds have struck a company already grappling with significant leverage. Evoke’s balance sheet remains stretched following its £2.2 billion acquisition of William Hill’s non-US assets in 2022. That deal left the group with a net debt of roughly £1.8 billion at the end of 2024—a figure more than five times its underlying EBITDA.
Consequently, the company has struggled to meet its deleveraging targets, leading to a dramatic 70% collapse in its share price prior to the review announcement.
Management has responded by scrapping previous financial targets and warning of reduced investment and potential job cuts in the UK market. The strategic review is seen by industry analysts as a necessary pivot, potentially inviting bids from private equity firms looking for distressed assets or rival operators seeking to consolidate their UK market share.
While the review by Morgan Stanley and Rothschild announcement caused a temporary 8% rally in share price, the company cautioned that there is no certainty a transaction will be agreed upon.
